-hoping for cooperation with partners in development to render this important project a success.
Addressing the inaugural session of the Program for Infrastructure Development in Africa (PIDA) 2019 which kicked off in Cairo on Monday, minister Shaker said the project would enable African countries to achieve the optimal use of energy resources available in the continent through the establishment of a unified African energy market working on solving energy problems in African countries.Minister Shaker conveyed the greetings of President Abdel Fattah El Sisi to the African event's participants.The five-day event will focus on issues such as the connections between infrastructure and energy, infrastructure and job creation, infrastructure and agriculture and industrialization, infrastructure and trade/economic integration and infrastructure and health
According to outlook report only 39% of the African population has access to electricity, compared to 70-90% in other parts of the developing world. According to the African Development Bank (AfDB), Africa’s power connectivity is at 39MW per million inhabitants, the lowest in any developing region.
More than 30 African countries experience recurrent outages and load shedding, with opportunity costs amounting to as much as 2 per cent of the total annual value of the economy.
Key challenges facing Africa’s electricity sector include the recurrent shocks in oil and gas markets, inefficient supply and consumption practices, growing demand, unstable rainfall patterns as well as limited generation capacity and lack of inter-connectivity of power grids.
Behind the under-exploitation of energy resources lies limited capacity to mobilize financing for investment, especially from private sources, owing to policy,institutional and regulatory issues which need to be addressed to create the necessary enabling environment for the much needed investments in energy to be made.
The report also noted that reducing Energy Costs, Increasing Access Power demand will increase six-fold between 2010 and 2040, an average annual growth of nearly 6%. To keep pace, installed power generation capacity must rise from present levels of 125 gigawatts to almost 700 gigawatts by 2040.
Through full implementation of the PIDA energy sector program, Africa will reap savings on electricity production costs of US$30 billion a year through power interconnectors which will integrate the African power market through Power Pools
and enable large-scale hydropower generation projects to be developed resulting increased access to power by business and households as power will move from surplus to deficit areas through inter-regional trade. Power access will rise from 39% in 2009 to nearly 70% in 2040, providing access to 800 million more people.